Lembaga Hasil Dalam Negeri Malaysia (LHDN) – Stamp Duty for Tenancy Agreement

Understanding LHDN Stamp Duty for Tenancy Agreements
August 20, 2024 by
Lembaga Hasil Dalam Negeri Malaysia (LHDN) – Stamp Duty for Tenancy Agreement
CONZLAB BERHAD, Penny Lim

Stamping Duty Video Description 

LHDN Stamp Duty

The Inland Revenue Board of Malaysia, also known as Lembaga Hasil Dalam Negeri Malaysia (LHDN), plays a vital role in the country's taxation system. Among its responsibilities is overseeing the collection of stamp duty on various documents, including tenancy agreements.

An agreement without proper stamping could lead to your agreement being deemed invalid legally. There could also be financial penalties range from double to 10 times the original stamp duty amount. The scarier possible complication for both the landlord and tenant would be an audit and investigation by LHDN which could lead to additional penalties and legal actions.

What is Stamp Duty?

Stamp duty is a tax imposed on certain legal documents to make them legally binding. In Malaysia, this duty is regulated under the Stamp Act 1949. When it comes to tenancy agreements, both landlords and tenants are obligated to pay stamp duty to the LHDN before a rental can happen.

How to Calculate Stamp Duty Fee

The formula to calculate your stamp duty fee would be:

[(Rental Fee x 12) - 2400 / 250] x rental period.]

  • Rental period of one year = RM1
  • Rental period of 2-3 years = RM2
  • Rental period of more than 3 years = RM4

For example, if your rental is RM1,800.00 per month and you'll be renting the premise for a year, the stamp duty fee would be [(1800 x 12) - 2400 / 250] x Rm1 = RM77.

Calculate your stamp duty


Lembaga Hasil Dalam Negeri Malaysia (LHDN) – Stamp Duty for Tenancy Agreement
CONZLAB BERHAD, Penny Lim August 20, 2024
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